2022: An Overview of Revenue Generated by African Startups

  • Between 2019 to 2022, African startups have generated over $12 billion
  • As at Q3 2022, the African startups have raised $4billion in funding
  • Traction reveals African startups could have generated extra $1.6 billion totalling $5.6 billion dollars in 2022.
  • More data compilation is still in process

Africa is home to an increasingly vibrant startup environment. It’s no surprise if you consider the benefits it provides to business owners, business partners, and investors, thanks to growing African economies. As the number of startups in Africa increases, so does the amount raised by African startups periodically.

Statistically, African startups in 2022 have generated about 8 billion dollars compared to the amount generated in the past five years. This is a significant increase from the estimated million dollars generated in 2017. Between 2019 to 2022, African startups generated over $12 billion, with 2022 having the highest percentage of more than $6 billion. Considering the amount generated in 2022, African startups are undoubtedly making waves globally.

Despite the massive funding, many people still don’t know how much revenue startups can generate. Many factors influence the growth of startups in Africa, such as capital availability and technology integration. However, there’s more to revenue generation than these factors.

This article looks closely at the revenue figures for African startups in 2022. Also, we explore the factors likely to influence growth in the years ahead. By the end of this article, you will have a better understanding of the potential for African startups and how to capitalize on this potential.

Overview of Revenue Made by African Startups in 2022

African startups are becoming more innovative, focusing more on solving local problems. This results in increased investment and partnerships from both local and international investors. So what are the industries that are expected to drive this growth? And which countries are expected to lead the way? Keep reading to find out.

Of the roughly $4 billion seed funding Africa attracted in 2021, Nigeria received the largest percentage of that allocation. Following closely were Egyptian companies, then South Africa and Kenya. As of the end of November, they accounted for 80% of all funds raised on the continent, with Nigeria alone raising 35%.

While the total technology revenue generated by startups in Africa in 2022 is certainly the most impressive factor for the ecosystem, it is just the tip of the iceberg. The year saw $100 million raised in a single round, with ten startups, including Unicorns Wave, OPay, Flutterwave, and Chipper Cash — raising $100 million and breaking all records.


This is a significant increase from 2020, when no African startups raised up to $100 million in a single funding round, and an overall increase from just two startups raising such funds before 2021. African tech startups raised $2.7 billion in the first three quarters of 2022, almost 30 percent more than the $2.1 billion banked in 2021.

A closer look at Digest African data reveals that revenue from African startups rose steadily from January to March 2022 before falling in April 2022. It picked up again in May 2022, with investment increasing by almost 25% in April 2022.

In absolute terms, startups in Africa have raised more than $850 million across more than 150 $100,000 deals (not including grants). Going back to 2019 or 2020, that would be a remarkable achievement, but considering what the ecosystem has accomplished over the past year, Africa has a long way to go.

Countries With High Potential for Generating Revenue

Africa is seeing a surge in startup activity, which has continued into 2022. A recent study found that the amount of revenue generated by African startups reached $5.6 billion in 2022.

As mentioned earlier, Africa is a continent with a lot of potentials. But which countries have the highest potential for generating revenue? According to a recent report, Nigeria, South Africa, and Kenya are the top three countries. These countries have the continent’s largest populations and most developed economies.

Nigeria is Africa’s most populous country, with over 200 million people. It also has the continent’s largest economy, with a GDP of over $400 billion, followed by South Africa, the second most populous country with over 55 million people and a GDP of over $300 billion, making it the second-largest economy in Africa. Kenya has over 48 million people with a GDP of over $70 billion.

Businesses that are Likely to Generate the Most Revenue

When it comes to startups, there are a few different types of businesses that generate the most revenue. These include:

– Technology companies

– Healthcare companies

– Green energy companies

In Africa, we see tremendous growth in these three industries. This is good news for the continent, as it means that there is a lot of potential for startups to generate a significant amount of revenue in the coming years.

Strategies for Maximizing Revenue Generation From African Startups in 2022

While it is difficult to make any definitive predictions, there are a few strategies that African startups have used to maximize their revenue in 2022.

  • Focus on providing products or services that solve specific problems for their target market. There is no shortage of needs in Africa, so if you can identify and address a pain point, you’ll be well on your way to success.
  • Take advantage of the growing number of digital platforms and online channels. From social media to e-commerce, there are many ways to reach and engage potential customers.
  • Finally, feel free to think outside the traditional business model. There are many opportunities for innovative startups to make a real impact in Africa. If you can tap into these trends and capitalize on them, you’ll be well-positioned for success in the years to come.


So, what is the expected amount of revenue that African startups will generate in 2022? The study found that the total revenue generated by African startups as at December 2022 is over $75 billion. This is excellent news for the African economy, and this number is expected to rise in the years to come.

Ojeyemi Adeleye
Ojeyemi Adeleye
I am Ojeyemi Adeleye, a theatre arts graduate of the University of Ilorin and a masters degree holder in Dramatic Arts, Obafemi Awolowo Univerisity. I am a content writer who believes the world can be brought to your doorsteps through writing.

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